2014 (7) TMI 471

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.... 2. The assessee is a private limited company engaged in the business of manufacturing different varieties of biscuits. The registered office of the assessee is located in Mumbai. The assessee manufactures biscuits at its own factories located at various places, one being in Bahadurgarh to which the aforesaid appeals pertained to. 3. The assessee has filed e-TDS Quarterly statement of deductions of tax for the 3rd quarter u/s 200 (3) of the Income-tax Act, 1961 on 15.01.2010. The return was processed. The PAN of deductees were not provided in this return and as per requirement of section 139A (5B) of the Act, valid PAN of all the persons on behalf of whom tax is deducted should be quoted in the quarterly statement. For not quoting and for ....

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....rounds of appeal." 5. Ld. AR submitted that this issue has been considered by the ITAT, Bangalore Bench in the case of Hewlett-Packard Globalsoft (P) Ltd. vs. DCIT in ITA No.19/Bang/2009 for Assessment Year 2008-09 dated 25.03.2009 wherein by interpreting the Press Release issued by CBDT, the penalty levied was deleted. He draws our attention to para nos.8 & 9 of the aforesaid order. For the sake of convenience, the relevant paras are reproduced hereunder :- "8. We have heard the rival submissions and perused the records presented before us. The department has not disputed as regards to the validity of the press release issued by the CBDT and its binding nature on the revenue. The only contention of the Revenue is that the press release d....

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....x collectors are, therefore, advised to obtain correct PAN of all deductees and quote the same in their TDS/TCS returns Deductees are also advised to furnish their correct PAN with their deductors, failing which they will not only have difficulty in getting credit of TDS/TCS in their income tax assessments but will also face penal proceedings under the Income Tax Act," 9. On going through the paras 2 and 3 of the press release, it is evident that the CBDT has prescribed a threshold limit for compliance i.e., to provide information of PAN data by virtue of section 139A(5B)(iv) of the Act. It says that "It had earlier been decided that Form 24Q with less than 90% of PAN data ..........will not be accepted for the quarter ending on 30.9.2007 ....